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- Suppose ManTown demand and supply curves for oil is given by ? = 500−4? ? = −100+6? a) Determine which one is the supply curve and which one is the demand curve and why? b) Calculate the equilibrium price and quantity c) Suppose that ManTown demand changes to ? = 600−4?. Find the new equilibrium price and quantity. e) Compare what happens to equilibrium quantities and prices in questions (b) and (c)? f) From equation (1), if the current price is 110, describe what happens to quantities and prices of demand and supply in this market?true or false - explain in short be supported with an economic model. If the demand for and supply of a product both increases, the equilibrium quantity of the product must also increase. If the demand for a product decreases and the supply of the product increases, the equilibrium price of the product may increase or decrease, depending on whether supply or demand has shifted more. Assume that there is a fixed supply in the market. A higher price will result from a change in demand brought about by a rise in income.Show the change graphically for a simultaneous decrease in demand and a increase in supply. For each scenario, state how equilibrium price and quantity changes. What is the conclusion of these changes (can you say for certainty what direction to equilibrium quantity and price changes)? Recall you have three sets of graphs here. Demand changes by a larger magnitude than Supply Demand changes by a smaller magnitude than Supply Demand and Supply changes by the same magnitude.
- Suppose ManTown demand and supply curves for oil is given by ? = 500−4? ? = −100+6? a) Determine which one is the supply b) Calculate the equilibrium price and quantity c) Suppose that ManTown demand changes to ? = 600−4?.Find the new equilibrium price and quantity. e) Compare what happens to equilibrium quantities and prices in questions (b) and (c)? f) From equation (1), if the current price is 110, describe what happens to quantities and prices of demand and supply in this market?Suppose IronTown demand and supply curves for oil is given by ? = 500−4? ? = −100+6? Determine which one is the supply curve and which one is the demand curve and why? Calculate the equilibrium price and quantity. Suppose that IronTown demand changes to ? = 600−4?. Find the new equilibrium price and quantity. Compare what happens to equilibrium quantities and prices in questions (2) and (c)? From equation (1), if the current price is 110, describe what happens to quantities and prices of demand and supply in this market?Suppose that in the citrus market, while the amount of production decreased due to cold winter conditions, consumers' desire to drink citrus juice increased in order to strengthen their immunity due to the COVID-19 epidemic. In this case, how is the equilibrium price and quantity affected in the citrus market? Evaluate this with the help of the figure for the case where the supply curve shifts more than the demand curve. (Note: Do not forget to write the names of the axes while drawing the figure. Show clearly the supply-demand curve and the market equilibrium point in the first case and the supply-demand curve and equilibrium point after the shift.)
- Consider the market for automobiles, and draw representative supply and demand curves.a) Suppose that the price of gasoline rises, and at the same time, the price of steel (an input to automobile production) falls. Show this on your graph. If you have no other information, what can you say about the change in equilibrium price and quantity?b) Now suppose that you have the additional information that the rise in gasoline prices has been relatively large, while the reduction in steel costs has been relatively small. How would this change your answer to (a)? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity increase or decrease, or are the answers indeterminate because they depend on the magnitudes of the shifts? a. Supply decreases and demand is constant. Price: Decreases Incorrect Quantity: Indeterminate Incorrect b. Demand decreases and supply is constant. Price: Increases Incorrect Quantity: Indeterminate Incorrect c. Supply increases and demand is constant. Price: Decreases Correct Quantity: Indeterminate Incorrect d. Demand increases and supply increases. Price: Increases Incorrect Quantity: Decreases Incorrect e. Demand increases and supply is constant Price: Indeterminate Incorrect Quantity: Decreases Incorrect f. Supply increases and demand decreases. Price: Decreases Correct Quantity: Increases Incorrect g. Demand increases and supply decreases. Price: Increases…Assume that the market price for beach towels increases considerably due to a worldwide shortage in the fabrics needed to produce them. Furthermore, suppose that some of these same fabrics are used in the production of bathing suits as well. Create a graphical depiction of the market for bathing suits (which are thought to be a complementary good to beach towels), making sure to indicate how the market will be impacted by the discussed changes. Make a conclusion about how the market price and equilibrium quantity of bathing suits will be affected.
- can you answer these questions too: Suppose that more consumers prefer the disposable cell phone over the smart phone because the disposable cell phone is more durable than the smart phone. This latest news comes after the fact that firms that manufacture disposable cell phones have the latest technology integrated into their production facilities. What will be the market effect? Going back to question (d), suppose that the price of a disposable cell phone is now set at $11.75. How many disposable cell phones will be demanded by consumers? Whichever curve you’ve determined should be shifted, derive the new function.Which of the following statements is (are) correct?(x) If the supply of a product increases, we would expect that the equilibrium price would decrease and the equilibrium quantity would increase.(y) If the demand for a product decreases, we would expect that the equilibrium price would decrease and the equilibrium quantity would decrease.(z) If the demand for a product increases or the supply of a product decreases, we would expect that the equilibrium price would decrease.A. (x), (y) and (z)B. (x) and (y) onlyC. (x) and (z) onlyD. (y) and (z) onlyE. (x) onlyHow will the following event(s) affect demand and/or supply and equilibrium price (p*) and equilibrium quantity (q*) in a competitive market? Please describe whether the demand and/or supply curve shift right or left and the final impact on equilibrium price (P*) and equilibrium quantity (q*). You must say whether equilibrium price and quantity will go up, down, or if it cannot be determined (indeterminate or “?”). Market: paint. Event: a hailstorm forces some of the paint manufacturers to shut-down.